Xylem (NYSE:XYL) Reaches New 12-Month Low - Should You Sell?

Key Points

• Xylem hit a new 52-week low, trading as low as $108.57 after closing at $109.44, highlighting recent weakness in the stock.
• Despite the drop, Wall Street remains mixed but constructive: analysts have a consensus “Moderate Buy” rating with an average target price of $152.77, though several firms have trimmed targets recently.
• The company posted better-than-expected Q1 results with EPS of $1.12 on revenue of $2.13 billion, and it also authorized a $1.5 billion share buyback plan.

Xylem Inc. (NYSE:XYL - Get Free Report) reached a new 52-week low during trading on Friday . The company traded as low as $108.57 and last traded at $109.2650, with a volume of 91803 shares traded. The stock had previously closed at $109.44.

Wall Street Analyst Weigh In

A number of research firms have recently commented on XYL. Robert W. Baird set a $161.00 price target on Xylem in a research report on Wednesday, February 11th. The Goldman Sachs Group set a $158.00 price target on Xylem in a research report on Wednesday, February 11th. JPMorgan Chase & Co. dropped their price target on Xylem from $170.00 to $160.00 and set an "overweight" rating on the stock in a research report on Thursday, April 16th. Jefferies Financial Group reaffirmed a "hold" rating and set a $130.00 price target (down from $140.00) on shares of Xylem in a research report on Tuesday, March 31st. Finally, TD Cowen reaffirmed a "hold" rating on shares of Xylem in a research report on Monday, February 23rd. Seven research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $152.77.

Xylem Stock Performance

The stock has a 50-day moving average of $120.83 and a 200-day moving average of $132.83. The firm has a market cap of $26.03 billion, a price-to-earnings ratio of 27.25, a price-to-earnings-growth ratio of 1.55 and a beta of 1.08. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.10 and a current ratio of 1.46.

Xylem (NYSE:XYL - Get Free Report) last announced its earnings results on Tuesday, April 28th. The industrial products company reported $1.12 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.09 by $0.03. Xylem had a return on equity of 11.26% and a net margin of 10.79%.The business had revenue of $2.13 billion for the quarter, compared to analyst estimates of $2.11 billion. During the same quarter last year, the firm earned $1.03 EPS. Xylem's revenue for the quarter was up 2.7% compared to the same quarter last year. Xylem has set its FY 2026 guidance at 5.350-5.600 EPS. As a group, analysts anticipate that Xylem Inc. will post 5.51 EPS for the current fiscal year.

Xylem declared that its board has authorized a share buyback plan on Wednesday, February 25th that authorizes the company to repurchase $1.50 billion in shares. This repurchase authorization authorizes the industrial products company to purchase up to 4.8% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's leadership believes its shares are undervalued.

Insider Buying and Selling

In other Xylem news, CAO Geri-Michelle Mcshane sold 4,269 shares of the firm's stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $117.46, for a total value of $501,436.74. Following the completion of the transaction, the chief accounting officer directly owned 3,605 shares in the company, valued at $423,443.30. This trade represents a 54.22% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Jerome A. Peribere purchased 1,210 shares of the firm's stock in a transaction on Monday, May 4th. The stock was bought at an average price of $116.61 per share, with a total value of $141,098.10. Following the completion of the purchase, the director owned 27,209 shares of the company's stock, valued at approximately $3,172,841.49. This represents a 4.65% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 0.32% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the stock. Bradley Foster & Sargent Inc. CT grew its stake in Xylem by 1.6% in the first quarter. Bradley Foster & Sargent Inc. CT now owns 25,972 shares of the industrial products company's stock valued at $3,104,000 after purchasing an additional 419 shares in the last quarter. Waverly Advisors LLC boosted its stake in shares of Xylem by 9.3% during the 1st quarter. Waverly Advisors LLC now owns 2,191 shares of the industrial products company's stock worth $262,000 after acquiring an additional 187 shares during the period. Dempze Nancy E boosted its stake in shares of Xylem by 1.1% during the 1st quarter. Dempze Nancy E now owns 28,882 shares of the industrial products company's stock worth $3,451,000 after acquiring an additional 308 shares during the period. Entropy Technologies LP boosted its stake in shares of Xylem by 45.7% during the 1st quarter. Entropy Technologies LP now owns 36,956 shares of the industrial products company's stock worth $4,416,000 after acquiring an additional 11,583 shares during the period. Finally, Healthcare of Ontario Pension Plan Trust Fund boosted its stake in shares of Xylem by 197.8% during the 1st quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 157,304 shares of the industrial products company's stock worth $18,798,000 after acquiring an additional 104,480 shares during the period. 87.96% of the stock is currently owned by institutional investors.

Xylem Company Profile

Xylem Inc NYSE: XYL is a global water technology company that designs, manufactures and services engineered systems and equipment for the transport, treatment, testing and efficient use of water. Its product portfolio spans pumps and pumping systems, valves, filtration and disinfection equipment, sensors and analytical instruments, and digital solutions for monitoring and control of water infrastructure. Xylem serves the full water cycle with offerings for water and wastewater utilities, industrial customers, commercial and residential buildings, and agricultural applications.

The company was established as an independent publicly traded company in 2011 following a corporate spin-off from ITT Corporation and is headquartered in Rye Brook, New York.

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